Employer Health Tax (EHT) Ontario

Employer
Health Tax (EHT)

EHT provides partial funding for the Ontario Health
Insurance Plan. Contributions are required from those employers who meet the
following criteria:

Those who have employees and they work at your permanent establishment in Ontario

Those who pay their employees from their Ontario permanent
establishment

Those who have Ontario remuneration over their share of the tax exemption.

Employers who qualify for EHT are exempt from employer
health tax on the first $400,000 of Ontario payroll. EHT is not applicable on self-employed individuals

When to pay Employer Health Tax (EHT)

If annual company payroll is $600,000 or less, employer need to
pay their taxes by next year March 15th. There may be a different due date if one's all payroll is in one month or if at any time one amalgamate, or if one close down his/her Ontario permanent establishment.
If payroll is in excess of $600,000 annually then monthly payments
are due.

Ontario
Employer Health Tax (EHT)

Rates and ranges for
2011 have not changed for Employer health Tax (EHT)

Annual Payroll Dollars

Tax rate 2012

Tax rate 2013

0.00

200000

0.980%

0.980%

200000.01

230000

1.101%

1.101%

230000.01

260000

1.223%

1.223%

260000.01

290000

1.344%

1.344%

290000.01

320000

1.465%

1.465%

320000.01

350000

1.586%

1.586%

350000.01

380000

1.708%

1.708%

380000.01

400000

1.829%

1.829%

40000.01

Over

1.95%

1.95%

Employer
Health Tax (EHT) Annual Return

All eligible
employers must have to send annual returns to the ministry of revenue with
required payment by March 15 which is due date of annual Employer Health tax
return. EHT annual returns forms are not available on the ministry website so
all the employers have to send original returns. Tax rate can be found using above table

Employer
Health Tax (EHT) Special Return

Employer Health Tax
Special Return or final returns are for those employers who pay all of their
Total Ontario Remuneration in one month of a calendar year. Special Return should
be sent within 15 days following the month in which the total Ontario remuneration was paid.
Note: Employer
Health Tax rates last changed January 1, 1990.